engleski

USING NETWORKS TO MANAGE COSTS OF FOOTWEAR AND LEATHER MANUFACTURING COMPANIES

Globalisation forces companies to improve financial performance and system coordination by acting together in some type of networks, with resources pooled and costs, information and experiences being aligned. The decision by companies to enter into a network relationship with other companies is influenced by the management`s decision and assessment to give up from autonomy in order to decrease operating costs and investment requirements, and for spreading of risk between the two parties. The main objective of this paper is to investigate how networks can be used in leather manufacturing and processing industry in developing countries to create and to distribute products at less cost and better quality. Case studies of horizontal and vertical networks in the Croatian leather manufacturing and processing industry are reviewed. Moreover, a qualitative study among companies in the Croatian leather manufacturing and processing industry was conducted in order to get knowledge how the top management in Croatian companies understands the concept of horizontal binding / clustering, and to determine factors for successful cost effective network organisation.

alignment ; network ; Croatia ; leather manufacturing and processing industry

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